Consultancy charges to us citizen

My views:

1. Taxable as per Income tax Act. However may not be liable as per treaty if NR is an individual/firm. 

2. No limit.

3. Form 15cb/ca compliance is needed for each payment. If Order from AO for Nil rate is available then form 15ca alone shall be required.

4. Few suggestions like applying for a PAN for NR etc., can be done.

Hi,

Thanks for your revert. Some more input to get the clear idea about his Tax liability.

He is  US national and working as consultant with our company. I heard from one of the consultant that he is not liable for any tax deduction in India as he dont have any presense in India. 

Is it required to submit form 15CA & CB to bank or we can just keep the copy of same if needed for future.

Sorry but I need to understand the rules for doing such outword remittance. If something is needed then I can get it done before its too late.

We have started doing remittances from last month onwards. We are submitting the followings docs to bank. Pls check

1) Request letter for remittance

2) Form A2,

3)Fema Declaration

4) EEFC Declaration

5) NIL TDS declaration/ 15CA/CB

Pls confirm on same. Thanks

1. What type of Consultancy services are provided? Whether technical or not ? We need to classify these first to determine ultimate tax liability. Just because NR does not have an office in India, does not relieve of tds liability. So we need more facts on these aspects.

2. Documentation seems very fine. Except for the fact Nil declaration, is it from AO? If so then you dont have to comply with 15cb.

Hope these shall be useful. Reach me at arihanthjaing @ gmail.com if you require further clarification.